0
Absolutely. It is most often expensed as a "loan to shareholder". This classification keeps track of the fact that the money did not come from the business operations, but places it into the category of "financial expenses" instead of operating expenses. This keeps your operating picture clean.
More importantly, imho, why are you running an LLC without the use of a professional bookkeeper or CPA. The number one recipe for small business failure is attempting to do the things that "we CAN" do (most often to keep expenses down). We must resist this temptation as there are only 168 hours in a week. Focus on doing only the things that "ONLY" you can do and outsourcing the rest. Skeptical? Try it for 30 days. Your results will amaze you.
Wiki User
∙ 11y ago
Add your answer:
Earn +20 pts
Can you file a business llc and personal taxes separately?
Do I have to file personal taxes if I own a small LLC? Or just file business taxes.
If you own a ccorp that owns a llc and your personal account is linked to the llc account since you will pay taxes at year end anyway can you move funds from the llc to your personal account legally?
The c corp needs to issue a dividend or pay you a salary. It's important not to co-mingle funds. (you might want to talk to your accountant about this)
What tax form should an LLC owned by a husband and wife file to report income and expenses?
LLC (Limited Liability Company) is a type of business that's allowed by state statute. But LLC isn't recognized as a classification for federal tax purposes. This means that an LLC must file a tax return as a corporation, partnership, or sole proprietorship. An LLC with at least two members can choose to be classified as a corporation or as a partnership. If you choose corporation status, you must file Form 8832 (Entity Classification Election). You don't need to file Form 8832 if you're an LLC filing as a partnership. Corporations file Form 1120 (U.S. Corporation Income Tax Return). Partnerships file Form 1065 (U.S. Return of Partnership Income). Each partner's share of income, expenses, etc., is then entered on Schedule C (Profit or Loss from Businss). For more information, go to the IRS Small Business screen at www.irs.gov/business/small. Select from the left column A-Z Index for Business to view/print the article, Limited Liability Company (LLC).
If you owe the IRS money--can you open an llc with someone else and can the IRS touch it?
The IRS can go after anything that could be construed as a fraudulent transfer to evade taxes. And even if it could not establish that the transfer was fraudulent, the IRS could go after your ownership interest in the LLC and take the LLC away from you to satisfy your tax debt.
Does a bank needs an operating agreement on all their llc accounts?
You need an LLC to open a business account that is operated as an LLC but you do not need the LLC Operating Agreement (that is for you and the members) but once you set up the LLC you can go to the bank. :) go to http://ellcoperatingagreement.com to learn more!
Can personal property be placed and protected IN an LLC?
Can a LLc protect personal dept?we have (3) propertys in a LLC can that be protected?
Can you file a business llc and personal taxes separately?
Do I have to file personal taxes if I own a small LLC? Or just file business taxes.
How can you find out if someone is hiding money in an llc?
The LLC is the best place to hide money and other assets. To only way to find out if someone is hiding money in an LLC is to hire an investigator.?æ
How does an llc effect personal taxes?
Income from an LLC goes directly to pay an individuals personal taxes. This is because there is no K-1 form associated with it.
Do you have personal liability with an LLC?
Generally, the members and managers of a limited liability company have no personal liability for the obligations incurred by the LLC. For example, if the LLC buys goods or services on credit and goes out of business, the members are not obligated to pay the creditors. There are many many ways, however, that personal liability can arise out of a person's participation in an LLC. Some of these include: * The person's own negligence, fraud or illegal act * Personal guarantees * "Piercing the veil" of the LLC
How does personal bankruptcy affect your LLC?
A LLC is considered one of your assets. The LLC protects you from liabilities it assumes, but it doesn't protect the LLC from your liabilities. Therefore, if you declare bankruptcy, you could possibly lose your share of an LLC. At best, it would be difficult for you to get credit for the LLC, since the individual generally has to secure credit for the LLC.
What does the LLC Corporation do?
"An LLC Corporation is often used by small business owners to protect them from monetary liability. When you set up an LLC Corp. your personal property, i.e., house, car and other personal assets are off limits from being included in a lawsuit against your business."
Corporation vs LLC?
Assuming you refer to a C-corporation, the major difference is the tax treatment of revenue/expenses and profit. The C-corporation is taxed at corporate tax rates whereas the LLC passes to its Managing Members all of its profits. The individual Managing Member is taxed at personal tax rates. There may or may not be other advantages of one over the other; for example, liability.
Can you delay a judgment against a personal guarantee by threatening to file bankruptcy in the name of an LLC?
No.. Not unless the LLC is the debtor. Whatever issues the llc has, are at that moment; of no concern to the guaranteed Creditors. They have no personal guarantee from the LLC. There is no Direct responsibility for the Guarantee from the llc. However, the Creditor can seek the assets of the Personal guarantor, including the assets held in the LLC to the extent that they are owned or controlled by the personal guarantor [borrower] 50% ownership would = 50% crossover from the personal guarantor's % of ownership. It might delay enforcement until it can be made clear to the court and relief from stay is awarded. But It will not normally delay the judgment in the prior matter. Get a consultation with a Specialist in this area of law. The comments here are based upon my lay interpretations and is not to be construed as legal advice. Trenton Sims California Broker 310.422.0435, 310.807.9230 FX Tsims@GreenPlanetFunding.com
If you own a ccorp that owns a llc and your personal account is linked to the llc account since you will pay taxes at year end anyway can you move funds from the llc to your personal account legally?
The c corp needs to issue a dividend or pay you a salary. It's important not to co-mingle funds. (you might want to talk to your accountant about this)
What is LLC business?
A business that is LLC is called a limited liability company. This means that the company is not taxed as a separate business. The profits and losses are reported through personal tax returns.
What are the advantages of forming a LLC?
The tax benefits are that if you are an independent contractor you can write-off expenses such as: gas, commercial vehicles, business equipment, and other fees and bills that an accountant could assist you. Also, there are protections from court liens and judgements against you if you have the company in an LLC. For example, if someone slips on a patch of ice on your property and decides to sue you, it is a good idea to have a separate LLC for every asset so the person suing may only get at the maximum the value of that asset. Your home, car, and anything else in your personal name would not be at risk.
